Is it wise for me to buy a second hand vehicle using a loan

Mamake Selina

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I am considering buying a second hand Toyota Avensis going at around Ksh. 590,000, it's a KBJ something. But I have the option of buying it in cash from my saving. Now I am confused about whether I should take the car loan that my bank is offering, or buy it using my savings. I am buying this vehicle to support my businesses in terms of delivery of products to clients, this coronavirus pandemic period. What's your take good people?
 

Betty Saku

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Buy the car with the savings and clear the balance kidogo kidogo ,na asihame kwa bedsitter, hiyo loan ataichukua wakati business zitaenda chini ama akitaka kuexpand.
 

Ethel Ouma

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Buy the car. Corona taught me the importance of a personal car. Stay put don't move to a one-bedroom until you are ready to do so.Let the judges keep judging u and on ur part keep giving them zero attention
 

Nyakundi james

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Free advice, a car has a lot of running expenses and you have to be prepared financially, you may as well need to buy an insurance cover for the car after purchase and maybe little touch-ups here and there, don't be so exact with a car budget.
 

Alex Kiongozi

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Buy that car in cash. You have said it is to advance your business. This is great. Buying it on loan will attract up to 200k on top of the 500k. You don’t need to move to a bigger house because you have bought a car unless compelled otherwise. Finally, always remember God in your endeavors.
 

Claire Phibee

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Again why he is considering a loan is coz if he buys the car on cash, he will be left with like 100k which to him he thinks it may be too little to continue with in terms of business
 

Sandra Mwilu

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What's the condition of the car? The reason I am asking this is that he can buy the car on that cash and spend the remaining 100k on the repair? And still, get a loan of the 500k and, buy the car and later use the cash in the bank for repair? Let him ask himself why the owner is selling the car. Pengine imemsumbua.
 

Maina Ngunjiri

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KBJ??? That's an old car for sure. I personally wouldn't risk using my saving to buy a car. Anything could happen. An emergency for example. Forget the interest but a loan gives you time to repay and still grow your savings.
 

Josemendez

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I am considering buying a second hand Toyota Avensis going at around Ksh. 590,000, it's a KBJ something. But I have the option of buying it in cash from my saving. Now I am confused about whether I should take the car loan that my bank is offering, or buy it using my savings. I am buying this vehicle to support my businesses in terms of delivery of products to clients, this coronavirus pandemic period. What's your take good people?
If your savings can afford the cost of the car , I don't see any reason while you will want to borrow loan .
Remember that you will add interest to the loan , which means more spending . And
Securing loans involves collateral.
 

mrki_user

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How old is that Avensis? Was it serviced regulary? I would rather buy it with my savings and without loan. Check market to see is price to high and try lower price from seller.
 

Abigael

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It sounds great that you are buying the car for the purpose of improving your business. I would prefer biying it with your savings. Taking loans can be so risky, better to stay away from them.
 
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